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Mar 22, 2013
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the government could not rescue the banking system. there should have been losses accrued to the critters of the banks who took risk webs but there was a formula where they tried to sort of keep everybody more or less unhappy, but they created a very bad package which, obviously, is proving untenable. they're not going to have to fix it. >> but how can they fix it? >> well, the eu has given the cypriots up until next monday to come up with an alternative because apparently this package of 6.5% for those below 100,000 and 9.9% to those above is 00,000 was something that was decided by the cypriot authorities. for whatever reason led them to do that, it clearly was a bad idea because if you have the implicit guarantee those that have 100,000, remember, this is not a loss. it's a tax. so theoretically, authorities have the authority to actually collect taxes on whatever. except it is being perceived as an ex appropriation of the savings. so -- but this is cypriot. this is a cyprus problem. don't extend it to the euro. the euro is not in d
the government could not rescue the banking system. there should have been losses accrued to the critters of the banks who took risk webs but there was a formula where they tried to sort of keep everybody more or less unhappy, but they created a very bad package which, obviously, is proving untenable. they're not going to have to fix it. >> but how can they fix it? >> well, the eu has given the cypriots up until next monday to come up with an alternative because apparently this...
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Mar 19, 2013
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heavily regulated by the government, though. and the auto industry, ford, gm and chrysler forced out the rivalries, but then had to deal with international competition which destroyed the dominance of the big three. but the rental car companies, they don't have to worry about foreign competitors. this industry is tied to economic activity capacity and both are going in the right direction for the likes of hertz and avis with a stronger economy boosting demand and reduced capacity that allows them to boost prices. aided by an east coast storage rental cars from superstorm sandy. with 94% of the industry in the pocket of the top three players, they don't have to worry about nasty things like price wars. who try to gain market share by undercutting the big boys. those smaller operators are gone! pretty much. this is a beautiful oligopoly. the businesses are in great shape. what do we do? we can't buy enterprise, privately held, and staying that way. so the choice is between hertz and avis. since the beginning of the year, the stock
heavily regulated by the government, though. and the auto industry, ford, gm and chrysler forced out the rivalries, but then had to deal with international competition which destroyed the dominance of the big three. but the rental car companies, they don't have to worry about foreign competitors. this industry is tied to economic activity capacity and both are going in the right direction for the likes of hertz and avis with a stronger economy boosting demand and reduced capacity that allows...
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Mar 21, 2013
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i say this is a big government, unprecedented power grab. it's paving the way, by the way, to a national sales tax. i truly believe that. but let's talk with our guests. back with us, grover norquist and gary shapiro, who is among the bill's supporters. i begin with you. >> first of all, let me correct what you said. it is not a new tax. this is not even a tax. this tax is owed by every american. >> this is a mandate by the tax to have all interstate mandates paid. the interstate bothers me, too. >> if it's unconstitutional, it is unconstitutional. i don't think it is. when you buy something in new york or new jersey, you as consumer on the internet are obligated to report to the state the tax that should be paid. >> in the state. >> in the state you're in. >> all right. >> the truth is most americans are not doing that. >> but this is not what that's doing. this is going out of states. this is crossing states, is it not, grover? >> all politicians fantasize about the idea of having a tax where they can take money from people who don't get t
i say this is a big government, unprecedented power grab. it's paving the way, by the way, to a national sales tax. i truly believe that. but let's talk with our guests. back with us, grover norquist and gary shapiro, who is among the bill's supporters. i begin with you. >> first of all, let me correct what you said. it is not a new tax. this is not even a tax. this tax is owed by every american. >> this is a mandate by the tax to have all interstate mandates paid. the interstate...
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Mar 25, 2013
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there is still no government. bersani right now is trying to see whether he can form a government. what is the most likely outcome in italy? and how long are investors in terms of looking at italian spreads likely to be pretty relaxed about it? >> well, i don't think they're relaxed. it's just a wait and see. >> price action. >> price action is following all the other price actions. i mean, the cyprus deal, we've seen even in the asian stock exchanges positive all over the world. obviously, italy, it's reacting positively and negatives against the general situation. >> yeah. >> today, it's positive all over. because whatever the deal is good or bad, it doesn't matter. we got a deal. the euro has been fine and so of. for what concerns the italian political stock, it's still a good question mark. so far, we think we're going to have a government sooner than later. and then we'll see if it's going to work or not. >> you think a government without another election is possible, they can bring together a coalition at the moment without an election? >> well, it really sdpents who they're
there is still no government. bersani right now is trying to see whether he can form a government. what is the most likely outcome in italy? and how long are investors in terms of looking at italian spreads likely to be pretty relaxed about it? >> well, i don't think they're relaxed. it's just a wait and see. >> price action. >> price action is following all the other price actions. i mean, the cyprus deal, we've seen even in the asian stock exchanges positive all over the...
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Mar 22, 2013
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going there takes away the sales tax revenue that governments have been relying on for years and years and years. and we as brick and mortar merchants are still required to collect that. so, really, like i said, it comes down to a matter of fairness for the collection. >> but you're going to get more revenue through more sales and in turn, you're going to get more taxation that way, by the money going into the economy. so the reason why people are going on the internet is for the tax reason and the competitive pricing. so all you're going to do here is hamper sales and the best thing going. 6% of the world right now is ecommerce, with the whole tech eco system growing, with smartphones, with tablets, it's going to continue to grow. that money will trickle down into the economy. you're going to kill it this way. >> it doesn't -- >> the truth is, let me push back on you as well, because is it really fair that if i go into a store i'm paying tax and if i do it online, i'm not? >> it's okay, because the local brick and mortar store is getting the tax benefit of that state. so why should a
going there takes away the sales tax revenue that governments have been relying on for years and years and years. and we as brick and mortar merchants are still required to collect that. so, really, like i said, it comes down to a matter of fairness for the collection. >> but you're going to get more revenue through more sales and in turn, you're going to get more taxation that way, by the money going into the economy. so the reason why people are going on the internet is for the tax...
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Mar 18, 2013
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it's like your money is confiscated by the government. that's the sort of thing that happens in africa. not in the west. so i mean, it really kind of puts a question mark over everything. >> i would just offer when i look at the markets today and i had a quote here from citi group if you have it in the back. i think it's wot sharing. citi group has come to the conclusion that the fears of contagion are really overrated. that cyprus is a unique situation. and i'ming looking at what you're looking at. >> haven as an offshore. >> a lot of money. >> about getting back at the russians. >> yeah. >> there it is right there. contagion risks are overrated. >> it's just not the origin. it's the size, the size of the banking system there is huge. >> three times gdp. >> no, no, no, eight times gdp. the average in europe is three times the gdp. here in the u.s. it's only one times gdp. they did that on purpose. >> some monday my is from russian. >> foreign money. >> we don't though that it's criminal money. it's packed opt plimized at a minimum is the
it's like your money is confiscated by the government. that's the sort of thing that happens in africa. not in the west. so i mean, it really kind of puts a question mark over everything. >> i would just offer when i look at the markets today and i had a quote here from citi group if you have it in the back. i think it's wot sharing. citi group has come to the conclusion that the fears of contagion are really overrated. that cyprus is a unique situation. and i'ming looking at what you're...
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Mar 18, 2013
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he said the number has been exaggerated by the communist government, the former communist government. the officials are saying the imf nor the ecb has independently verified this figure. tyler, i have a call in to the imf. i'm awaiting their response. >>> 40% of the deposits in the cyprus banks belong to foreigners. many of whom are russian investors. robert frank here with the fallout on this. i guess it's easier for the cyprus officials to say let me take the money out rather than lay the whole cost of this bailout on cyprus' taxpayers. >> but the way they did it is surprising. cyprus is not just a tax haven for russia, it is the tax haven for russian millionaires and billionaires. russia has invested $119 billion, that's with a "brks" in cyprus in 2011 alone. that's by far the largest recipient of russian investments in the world. equal amount of investment came back to russia from cyprus. funny how that works. russian investment is five times the total economic output for cyprus. russians account for $20 billion of total bank deposits or, tyler, as you mentioned, more than a third
he said the number has been exaggerated by the communist government, the former communist government. the officials are saying the imf nor the ecb has independently verified this figure. tyler, i have a call in to the imf. i'm awaiting their response. >>> 40% of the deposits in the cyprus banks belong to foreigners. many of whom are russian investors. robert frank here with the fallout on this. i guess it's easier for the cyprus officials to say let me take the money out rather than...
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Mar 19, 2013
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and we've been very very proactive as a government in our money sectors, europe has not. doing what they're doing now, unprecedented, contrary to all aspects of the law, is going to create, i think, a dislocation that no one can predict. >> well, we're all connected. that's the bottom line. peter, good to have you on the program. >> thanks very much for your time. >> thanks very much for joining us. >>> it is about time. samsung tossing its hat into the smart watch ring, to keep up with rival apple. regardless of who gets to the market first, will consumers latch on to a smartphone watch? and later, what do professional football players and private equity geeks have in common? nfl executive eric grugman speaks with me about the league's latest multi-million dollar partnership and where they plan to put money to work in a few minutes. stay with us. your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith
and we've been very very proactive as a government in our money sectors, europe has not. doing what they're doing now, unprecedented, contrary to all aspects of the law, is going to create, i think, a dislocation that no one can predict. >> well, we're all connected. that's the bottom line. peter, good to have you on the program. >> thanks very much for your time. >> thanks very much for joining us. >>> it is about time. samsung tossing its hat into the smart watch...
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Mar 20, 2013
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forcing governments, in this case the government in cyprus to look elsewhere. again, do we want europe -- talking to the russian government about getting financial assistance, to get out of the blackmail in europe. this is very peculiar. >> it sounds to me like the decision you would like to see is one that ends up bailing out russian depositors in the banking system. those who are not insured. is that a bailout that you think is the right one? and one that should be approved by, for example, by german taxpayers or paid for by german taxpayers? >> so this is the rhetoric you refer to is precisely part of the rhetoric that has been distractive in handling the crisis in the last three years. first of all, confiscating deposits in a banking system is not the proper way to deal with anything. and this is what the european governments have proposed. second of all, we're not talking about making a gift to anybody. when the government of cyprus is out of market and cannot finance its own needs from international markets, under the circumstances, other countries throug
forcing governments, in this case the government in cyprus to look elsewhere. again, do we want europe -- talking to the russian government about getting financial assistance, to get out of the blackmail in europe. this is very peculiar. >> it sounds to me like the decision you would like to see is one that ends up bailing out russian depositors in the banking system. those who are not insured. is that a bailout that you think is the right one? and one that should be approved by, for...
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Mar 21, 2013
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government -- u.s. economy's improving. but we still have fundamental issues in the structure of our economy, imbalances. we are not out of the woods yet. we're not in self-sustaining recovery. we need to start to see that to become increasingly more bullish on the financial markets. >> that was really good. you're a good double act. we should have you on more. thank you both. brian and chad. have great days. >>> seven years ago today twitter co-founder jack dorsey sent the first tweet writing just setting up my twitter. since then the media giant has become a staple for millions. it has transformed the way people communicate so what could twitter do in the next seven years? tweet us @squawkstreet. >>> the market is accelerating downward, now down 67 points. let's get a "market flash" from josh back at hq. >> juniper networks is under pressure this morning. analysts at fbr not fans saying we are the end of an era as routers and switches are set to decline. fbr downgrades juniper and cisco toeon perform. the company's fbr sa
government -- u.s. economy's improving. but we still have fundamental issues in the structure of our economy, imbalances. we are not out of the woods yet. we're not in self-sustaining recovery. we need to start to see that to become increasingly more bullish on the financial markets. >> that was really good. you're a good double act. we should have you on more. thank you both. brian and chad. have great days. >>> seven years ago today twitter co-founder jack dorsey sent the first...
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Mar 18, 2013
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so the government has been signaling other moves in other stocks. so i like to buy things on a bargain when i go shopping. now is a great time to sit and do fundamental analysis. >> that is the huge caveat. this is not going and picking randomly through stocks. you have to really know the stuff inside out before you get involved. >> you have to do work to make money. what a concept. no, i agree. >> do you like french banks. >> i don't have any particular view on one general sector. it's bank by bank by bank. there's no easy trade here. >> are there any banks that you like in france. >> i don't have any off the top of my head right now. there's an italian company with 17% of the revenue comes from italy. so it's going to get sold down in the italian market. a german robotics company. a lot of revenue comes from outside the eu. it is giving a sale. it's really a great find. >> any hedging currency based on the dollar to the euro? >> yes. we go long and short. so on the net currency we tend to hedge it, yes. >> when you compare europe to the united sta
so the government has been signaling other moves in other stocks. so i like to buy things on a bargain when i go shopping. now is a great time to sit and do fundamental analysis. >> that is the huge caveat. this is not going and picking randomly through stocks. you have to really know the stuff inside out before you get involved. >> you have to do work to make money. what a concept. no, i agree. >> do you like french banks. >> i don't have any particular view on one...
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Mar 22, 2013
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the government is reconvening today. cyprus' finance minister flying back after two days of talks after they failed to deliver the deal to rescue the country. our chief international correspondent michelle caruso-cabrera live in nicosia, cyprus. >>. >> reporter: the drama convincing right now is convincing parliament to sit down and actually vote to give the central bank of this country the authority to resolve banks. in other words, to wine down the troubled banks here in the country. right now there is a proposal on the table that would allow him to do that. that would mean that the weakest bank in the country nike would be wound down. the good assets moved to a different bank. there are protesters to my left who do not like that proposal at all. since i last saw you the head of the bank was brought here to hear what would happen. we had a long discussion about what was going happen and then i asked him a lot of questions about the history of like and how is it that how on earth we even got to this place. should his ba
the government is reconvening today. cyprus' finance minister flying back after two days of talks after they failed to deliver the deal to rescue the country. our chief international correspondent michelle caruso-cabrera live in nicosia, cyprus. >>. >> reporter: the drama convincing right now is convincing parliament to sit down and actually vote to give the central bank of this country the authority to resolve banks. in other words, to wine down the troubled banks here in the...
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Mar 22, 2013
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the government spokesperson came out about 15 minutes ago. he spoke 10 minutes and said almost absolutely nothing. the plan c is being written up right now by cyprus to submit to the european partners, see if they can get this one passed. we are almost 100% sure it includes the winddown in one of the weakest banks. there's protesters at the end of this street. they are worried about losing their jobs. the cash shortage here is still quite acute. gas stations are only accepting cash, the vast majority of them. they take up to 30 euros credit. no visa is a generic term for credit cards in general. i want to add something i said last hour. i absolutely believe there will not be an attempt to impose a tax on in the future when it comes to deposits. however, i think the one key lesson here is junior bondholders, senior bondholders will definitely take big losses if this goes down. and uninsured depositors will take losses. this is a big step for europe getting closer to the point where tax payers don't pick up the bills for failed states and faile
the government spokesperson came out about 15 minutes ago. he spoke 10 minutes and said almost absolutely nothing. the plan c is being written up right now by cyprus to submit to the european partners, see if they can get this one passed. we are almost 100% sure it includes the winddown in one of the weakest banks. there's protesters at the end of this street. they are worried about losing their jobs. the cash shortage here is still quite acute. gas stations are only accepting cash, the vast...
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Mar 19, 2013
03/13
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so i think this new government is a real plus for changes in the chinese government that will be a big advantage, especially in the economics in the area of currency convertibility. i think you're going to see a lot of opening up of the chinese capital markets over the next coming years. >> and is on that score, if you're lew, how do you approach that issue, currency? >> well, the u.s. has always been pressing for opening of the capital markets, partly because the u.s. represents have had backing from wall street and the investment banks. but now, the chinese have a reason to do it on their own. they have $3.5 trillion worth of foreign reserves. they have to find a way toni vest those assets over the coming decades. they have to be invested in other countries in order to not put pressure on the currencies, which means they need cooperation of government. the u.s., in turn, needs the chinese government to continue holding the debt that they own and, as we can see from projection would be to buy a lot more of it. i think both of those things will happen. but currency, cop veteranbility,
so i think this new government is a real plus for changes in the chinese government that will be a big advantage, especially in the economics in the area of currency convertibility. i think you're going to see a lot of opening up of the chinese capital markets over the next coming years. >> and is on that score, if you're lew, how do you approach that issue, currency? >> well, the u.s. has always been pressing for opening of the capital markets, partly because the u.s. represents...
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Mar 21, 2013
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the question is how much does the russian government want to put up? it would have to put up quite a lot of money if -- to avoid any real problems in cyprus to guarantee that this will happen. probably talking 6 billion euros would be needed to avoid any writedowns of these deposits. they will get that money back. the main reason they didn't get more money -- more money wasn't lent, it's grossly overin debted. you would have to consider it a gift. they have talked about reference. on the base of what we're hearing at the moment, it doesn't seem likely. that creates quite big questions for the west. cyprus is an important base. >> martin, thank you. appreciate your time today. >> pleasure. >> and a preview of what's coming up from new orleans. andrew? >> we are in the big easy he. we are talking mergers and acquisitions. we have the co-head coming after after this break. we'll talk to him after this short break. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform
the question is how much does the russian government want to put up? it would have to put up quite a lot of money if -- to avoid any real problems in cyprus to guarantee that this will happen. probably talking 6 billion euros would be needed to avoid any writedowns of these deposits. they will get that money back. the main reason they didn't get more money -- more money wasn't lent, it's grossly overin debted. you would have to consider it a gift. they have talked about reference. on the base...
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Mar 25, 2013
03/13
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the cypriot government does not have to approve the deal. is that not weird it you in the biggest worry to me is the effect of this whole union of the think banking commit pep steve liesman was talking about it this morning and i think he's right. there will be people slowly moving deposits out of the higher risk countries and maybe into the u.s. and the uk, as well. here's what to look for. april 4th and that's the ecb meeting. watch what mario draghi has to say about that and that he'll make liquidity more available to banks. remember those ltros that they did about a year ago. don't be surprised that they dragged those things out again and everybody was talking about the weak top line growth. there is the company that has to be the envy for everybody looking for top line growth. their projected sales for 2014 and 10% to 12% increase and take out all of the new stores and same-store sales growth, 4% to 6% and those are really good numbers and that stock's up today sitting at a six-month high and i want to see a big welcome to people on the
the cypriot government does not have to approve the deal. is that not weird it you in the biggest worry to me is the effect of this whole union of the think banking commit pep steve liesman was talking about it this morning and i think he's right. there will be people slowly moving deposits out of the higher risk countries and maybe into the u.s. and the uk, as well. here's what to look for. april 4th and that's the ecb meeting. watch what mario draghi has to say about that and that he'll make...
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Mar 18, 2013
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that's going to be tougher to sell to local governments. might be able to tax them even if it's a remote possibility it makes that european banking union tougher. let's look at what's on the upside and it's all the sort of risk/loss kind of things. gold is up. metal and mining stock is up. long-term treasuries are up. all the bond etfs are to the upside. biggest corporate bond, lqd. all of them are on the upside. not a surprise but fairly modest moves for them as you can see. >> thank you. >>> all right. let's go to check on energy and commodities. sharon epperson at the nymex. >> definitely. that's what where the safe haven bid is. gold prices up 1700 an ounce. we got as high as 1610 an ounce. they say that is the number gold needs to close above to sustain any upward momentum here. we're still looking at $11 gain or so in the gold price. we're also keeping an eye on what's happening in other metals because copper, it's a far different story. copper continues to be one of the worst performing commodities of the day, considering what has ha
that's going to be tougher to sell to local governments. might be able to tax them even if it's a remote possibility it makes that european banking union tougher. let's look at what's on the upside and it's all the sort of risk/loss kind of things. gold is up. metal and mining stock is up. long-term treasuries are up. all the bond etfs are to the upside. biggest corporate bond, lqd. all of them are on the upside. not a surprise but fairly modest moves for them as you can see. >> thank...